Allgreen

Allgreen: 1Q11 results slightly above expectations.
Revenue surged 55.7% YoY to $242.8m attributable to all business segments, net profit up 142% YoY to $84.5m. Of note is the property devt segment which saw stronger take-up and higher progressive sales. Key project Cascadia@Bukit Timah (88% sold, with 77 units sold in 1Q11 alone), TOPed in 4Q10, allowing Allgreen to book the full amount of sales proceeds...

Also, Phase 1d of Pavilion Park and Skysuites@Anson were launched in Feb 11 and Mar 11 and are 27% and 21% sold, rptvly.
Investment properties such as Traders Hotel and Great World Retail and Serviced Apts registered good occupancies...

Gearing further improved to 0.14x, suggesting ample debt headroom for landbank expansion. But analysts have expressed concern about Allgreen’s inability to acquire new sites, as the developer was unsuccessful for the past 14 tenders, with their bids coming in close to bottom bids...

Citi maintains Buy, but lowers TP to $1.34 from $1.52, on rising concerns over policy risks.
MS, Macquarie maintain at Outperform, with TP $1.26, $1.44 rptvly.
Deutsche, JPM maintain at Hold with TP $1.12, $1.20 rptvly.